Better%20by%20the%20Drop:

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Better by the Drop

• Revealing the Value of Water in Canadian
  Agriculture

A summary of Better by the Drop, a 2013 report
published by the Blue Economy Initiative
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FOOD FOR THOUGHT

• Global food demand is set to double by 2050, but
  the availability of fresh water is on the
  decline
• With 3,300 km3 of annually renewable water,
  Canada is one of only five countries in the
  world that can significantly expand its
  agricultural exports
• Can we unlock this economic potential by
  developing a strategic approach to the way we use
  and manage water?

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BEI REPORT TACKLES SOME TOUGH ISSUES

• Canadas most productive food-growing regions are
  our driestand getting drier. Will we be able to
  expand production there?
• Based on water availability and the economic
  return on water investment, which crops should
  we grow and where?
• Some countries target certain crops for domestic
  production and decide what theyll import based
  on water availability. What lessons are there for
  Canada?
• Water for food, or water for fuel? Whats the
  global impact of this trade-off, and what role
  can Canada play?
• Which regions are getting the crop-per-drop
  ratio right?
• What impact would an increase in food
  productivity have on the long-term health of our
  fresh water systems?

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ISSUE 1 FOOD DEMAND IS ON THE RISE
Population growth
Changing diets, with increased demand for meat
Urbanization
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ISSUE 2 AVAILABILITY OF CROPLAND IS SHRINKING
Urban expansion
Rising oceans
Soil degradation
Acreage used for bio-energy production rather
than food

• These factors are sharply reducing the land area
  available for food production in many regions.

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ISSUE 3 FRESH WATER IS INCREASINGLY SCARCE

• Without water, nothing can grow

Climate change
Water pollution
Groundwater overdraft
These factors are curtailing fresh water
availability in many of the worlds traditional
breadbaskets.
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WHATS NEEDED FOR A COUNTRY TO BE A SUCCESSFUL
FOOD EXPORTER?

• Sufficient fertile land and water
• Suitable climate for the key export commodities
• Reliable infrastructure
• Efficient commercial and financial services

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FIVE COUNTRIES HAVE WHAT IT TAKES TO FEED THE
WORLD

• Only five countries possess the Goldilocks
  combination of ample precipitation and low ratios
  of population to arable land

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CANADAS COMPETITIVE ADVANTAGES
Water 3,300 km of annually renewable water
Land Second highest ratio of arable land per capita
Growing Seasons Extended seasons in parts of Canada due to warming in the continental interior and higher latitudes
Infrastructure Agri-food infrastructure, well-known and well respected national identity, well-established producers and producer associations, and sophisticated intermediary sales, finance and distribution services for agricultural commodities. Canadas transportation and shipping infrastructure is competitive with any other exporting nation.
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OUR TOP FOOD EXPORTS AND EXPORTING REGIONS

• Canada is ranked number one in global production
  of lentils, peas, linseed (flax seed), and
  rapeseed (canola), and second in oats and
  blueberries (as ranked by the United Nations).
• Agricultural production is estimated to
  contribute 139 billion annually to Canadas
  economy
• In 2011, beef was the most valuable commodity in
  Canada, followed by rapeseed, pork, milk and
  chicken
• Canada ships more than half the peas, lentils and
  linseed available to other nations, and roughly a
  third of the worlds canola
• Canada exports between 56-93 per cent of its
  national production of key food commodities

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VALUE OF FOOD COMMODITIES PRODUCED IN CANADA
BETWEEN 2001-2011
Source FAO (2011)
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VALUE OF TOP FOOD COMMODITIES EXPORTED FROM
CANADA 2001-2010
Source FAO (2011)
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ON THE OTHER HAND

• Canadas farm belt is getting drier
• The most fertile regions are most at risk
• We are degrading the water we have
• Theres a limited opportunity to grow crops in
  Canada's boreal region and the Canadian Shield

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OUR FARMLAND

• Provinces with irrigated agriculture
• Saskatchewan
• Alberta
• British Columbia
• Provinces that primarily rely on rainfed
  agriculture
• Manitoba
• Ontario
• Quebec
• Maritime provinces

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TOTAL VIRTUAL WATER REQUIREMENT
British Columbia , Okanagan Valley Irrigation
water needed per year
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FIVE WAYS TO MAXIMIZE WATER PRODUCTIVITY
Improve irrigation efficiency
Reduce the area under irrigation
Grow crops that are water efficient
Establish virtual water metrics (the volume of
water required to produce a quantity of food or
any other product)
Distinguish between irrigated water use (blue and
grey water) and rainfed production (green water)
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P.S ON WATER MATH
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TO SUM UP

• When water is plentiful in a growing region, a
  rational strategy may be to pursue the highest
  export dollar value regardless of a crops water
  intensity.
• But as water supplies become more strained, new
  alternatives can arise when individual farmers,
  irrigation districts, agri-food producers and
  government authorities know which farm products
  deliver the most crop-per-drop under different
  conditions.

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SEVEN RECOMMENDATIONS
1 Develop drought/flood contingency plans
2 Provide incentives for innovation in water efficiency
3 Establish virtual water and water footprint analysis pilot projects
4 Create national virtual water inventory and risk assessment tool
5 Support farm level research, education and access to information
6 Implement true cost accounting to capture externalities
7 Evolve toward full water footprint/life cycle assessment
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